Travel and Subsistence Expenses: What You Can (and Can’t) Claim from HMRC

At first glance, claiming travel and subsistence expenses might seem straightforward.

In reality, it’s one of the most misunderstood areas of tax, and a frequent trigger for HMRC enquiries.

The issue lies in HMRC’s strict interpretation of the rule that expenses must be:

“Wholly, exclusively and necessarily” incurred in the performance of employment duties

This is a high threshold—and many claims fail because they don’t meet all parts of the test.

Understanding the “wholly, exclusively and necessarily” rule

This rule has three separate conditions—and all must be met:

• Wholly – the expense must be entirely for work purposes
• Exclusively – there must be no personal element
• Necessarily – every employee in that role would have to incur the expense

If any one of these fails, tax relief is denied.

This is why even reasonable or work-related costs are often disallowed.

The key rules for travel expenses

When it comes to travel, HMRC applies two important principles:

1. Travel must be part of your job duties

The travel must be in the performance of your employment, not just getting to work.

For example:

• Travelling between sites during the working day → usually allowable
• Travelling from home to your main workplace → not allowable

2. You must be required to incur the cost

The expense must arise because of your role—not personal choice.

This means the cost must be:

• Necessary for your work
• Directly linked to attending a workplace

Permanent vs temporary workplaces

This is where many claims go wrong.

Permanent workplace

A permanent workplace is somewhere you:

• Attend regularly
• Have an ongoing work pattern

Travel here is treated as ordinary commuting and is not tax deductible.

Temporary workplace

A temporary workplace is somewhere you attend:

• For a limited duration
• Or for a temporary purpose

Travel to a temporary workplace may qualify for tax relief.

The 24-month rule (critical)

Even if a workplace is temporary, it becomes permanent if:

• You spend (or expect to spend) more than 40% of your working time there, and
• This lasts (or is expected to last) more than 24 months

Once this threshold is met, travel relief stops.

Why commuting is never allowable

Travel between home and your permanent workplace is always treated as personal.

HMRC’s reasoning is simple:

Where you choose to live is your personal decision—not your employer’s.

Even if:

• The journey is long
• You are required to attend the office
• You work hybrid

It still does not qualify for tax relief.

Hybrid working: No change in HMRC’s position

With the rise of hybrid working, many employees assume commuting costs might now be deductible.

However, HMRC has made it clear:

• Travel to your office remains ordinary commuting
• Even if you only attend occasionally
• Or your employer requires office attendance

Employers may choose to reimburse these costs—but that does not make them tax-free.

Mixed journeys: A common trap

If a journey has both:

• Business purpose
• Personal purpose

It will usually fail the test.

HMRC rarely allows apportionment for employees unless the private element is truly incidental.

Subsistence: When food and accommodation qualify

Subsistence costs (such as meals, accommodation, and travel-related expenses) are closely linked to travel.

They may be allowable if:

• You are travelling to a temporary workplace
• The cost arises because of that travel

Example

• Buying lunch near your normal workplace → not allowable
• Buying a meal while travelling to a temporary site → potentially allowable

Again, the same strict test applies—there must be no personal element.

Practical tips to avoid HMRC challenges

To protect your claims:

• Clearly identify whether a workplace is temporary or permanent
• Keep records of travel dates, locations, and purpose
• Avoid claiming for commuting or mixed-purpose journeys
• Ensure expenses are genuinely required by your role
• Review claims regularly—especially for long-term assignments

Final thoughts

Travel and subsistence claims are one of the most commonly misunderstood areas of tax.

The key takeaway is:

Just because an expense is work-related does not mean it is tax deductible.

HMRC applies the rules strictly, and even small errors can lead to disallowed claims, additional tax, and penalties.

Need help with expense claims or HMRC enquiries?

At Merranti Accounting, we help employees and business owners:

• Review expense claims
• Ensure compliance with HMRC rules
• Deal with enquiries and disputes

If you’re unsure whether your expenses qualify, get in touch with our team for clear, practical advice.